BILL NUMBER: AB 821	CHAPTERED  09/30/00

	CHAPTER   1028
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 31, 2000
	AMENDED IN SENATE   JANUARY 10, 2000
	AMENDED IN SENATE   JUNE 14, 1999
	AMENDED IN ASSEMBLY   APRIL 13, 1999

INTRODUCED BY   Committee on Public Employees, Retirement and Social
Security (Correa (Chair), Firebaugh, Honda, Knox, and Pescetti)
   (Coauthors:  Senators Johnston, Karnette, Ortiz, and Vasconcellos)

                        FEBRUARY 24, 1999

   An act to add Sections 22134.5 and 22136.5 to the Education Code,
relating to retirement.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 821, Committee on Public Employees, Retirement and Social
Security.  Retirement.
   Existing law provides for the payment of retirement benefits to
various school employees under the State Teachers' Retirement System
.  Under existing law, the retirement benefits are computed based
upon various factors, including the employee's final compensation.
Under existing law, for those school employees, "final compensation"
means the highest average annual compensation earnable by a member
during any period of 3 consecutive school years.
   This bill would change that definition of "final compensation" for
members with 25 or more years of credited service to, instead, mean
the highest average annual compensation earnable by the member during
a consecutive 12-month period of employment, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 22134.5 is added to the Education Code, to
read:
   22134.5.  (a) Notwithstanding Section 22134, "final compensation"
means the highest average annual compensation earnable by a member
during any period of 12 consecutive months while an active member of
the Defined Benefit Program or time during which he or she was not a
member but for which the member has received credit under the Defined
Benefit Program, except time that was so credited for service
performed outside this state prior to July 1, 1944.  The last
consecutive 12-month period of employment shall be used by the system
in determining final compensation unless designated to the contrary
in writing by the member.
   (b) For purposes of this section, periods of service separated by
breaks in service may be aggregated to constitute a period of 12
consecutive months, if the periods of service are consecutive except
for the breaks.
   (c) The determination of final compensation of a member who has
concurrent membership in another retirement system pursuant to
Section 22115.2 shall take into consideration the compensation
earnable while a member of the other system, provided that all of the
following exist:
   (1) The member was in state service or in the employment of a
local school district or a county superintendent of schools.
   (2) Service under the other system was not performed concurrently
with service under the Defined Benefit Program.
   (3) Retirement under the Defined Benefit Program is concurrent
with the member's retirement under the other system.
   (d) The compensation earnable for the first position in which
California service was credited shall be used when additional
compensation earnable is required to accumulate three consecutive
years for the purpose of determining final compensation under Section
23805.
   (e) If a member has received service credit for part-time service
performed prior to July 1, 1956, the member's final compensation
shall be adjusted for that service in excess of one year by the ratio
that part-time service bears to full-time service.
   (f) The board may specify a different final compensation with
respect to disability allowances, disability retirement allowances,
family allowances, and children's portions of survivor benefit
allowances payable on and after January 1, 1978.  The compensation
earnable for periods of part-time service shall be adjusted by the
ratio that part-time service bears to full-time service.
   (g) This section shall only apply to a member who has 25 or more
years of credited service, excluding service credited pursuant to
Section 22714, 22715, 22717, or 22826, but including any credited
service that a court has ordered be awarded to a nonmember spouse
pursuant to Section 22652.  This section also shall apply to a
nonmember spouse, if the member had at least 25 years of credited
service, excluding service credited pursuant to Section 22714, 22715,
22717, or 22826, on the date the parties separated, as established
in the judgment or court order pursuant to Section 22652.
  SEC. 2.  Section 22136.5 is added to the Education Code, to read:
   22136.5.  (a) Notwithstanding Section 22136, "final compensation"
with respect to a member whose salary while an active member was
reduced because of a reduction in school funds means the highest
average annual compensation earnable by the member during any 12
months while employed to perform creditable service subject to
coverage by the Defined Benefit Program if the member elects to be
subject to this section.
   (b) This section shall only apply to a member who has 25 or more
years of credited service, excluding service credited pursuant to
Section 22714, 22715, 22717, or 22826, but including any credited
service that a court has ordered be awarded to a nonmember spouse
pursuant to Section 22652.  This section also shall apply to a
nonmember spouse, if the member had at least 25 years of credited
service, excluding service credited pursuant to Section 22714, 22715,
22717, or 22826, on the date the parties separated, as established
in the judgment or court order pursuant to Section 22652.
